Is EPS mandatory?

Author

Christopher Ramos

Published Feb 24, 2026

Is EPS mandatory?

Features of EPS

It is mandatory for employees who earn a basic salary plus DA of Rs. 15,000 or less to enrol in the scheme. You will be able to withdraw the EPS once you attain the age of 50 years. Employees who are enrolled in the EPF scheme will automatically be enrolled in the EPS scheme.

Also to know is, is EPS compulsory?

It is mandatory for every employee drawing a basic pay of up to Rs. 6,500 per month to make contribution towards EPF & EPS. Normally, both the employer and employee contribute 12% each of the 'basic salary' of the employee plus DA (if any).

One may also ask, how much pension will I get from EPS? Monthly pension = Number of years multiplied by last drawn salary divided by 70. But EPS pension is very low because EPFO capped the salary used for computation of pension at Rs 15,000 per month. It also capped the contribution to the EPS. Instead of 8.33% of the employer's contribution, it was Rs 15,000 per year.

Similarly, can EPS be withdrawn?

EPS WithdrawalThe employee can withdraw the number of EPS even if they have not completed 10 years of service. However, if an individual is in service and has not completed 10 years then he/she cannot withdraw the EPS amount. The individual can withdraw the savings of EPS on the EPFO portal by claiming Form 10C.

Is EPF and EPS Number same?

There is no separate Employee Pension Scheme (EPS) number. The PF account number is the account in which your employer's contribution as well as your contribution for the EPF is deposited. EPS is linked with the EPF. You can log in to Member Passbook and check your passbook.

What is a good eps?

The EPS Rating takes into account the growth and stability of a company's earnings over the past three years, with extra weighting put on the most recent two quarters. The result is assigned a rating of 1 to 99, with 99 being best.

How do you check EPS?

A member can check the amount accumulated in his Employees' Pension Scheme (EPS) account in his EPF Passbook. The last column in the passbook shows the EPS contribution deposited by the employer every month in the account of the member.

What is EPS number in salary slip?

Universal Account Number (UAN) and Provident Fund (PF) account number are the only numbers that are provided. There is no separate Employee Pension Scheme (EPS) number. The PF account number is the account in which your employer's contribution as well as your contribution for the EPF is deposited.

Can I withdraw EPS after 10 years?

EPS Withdrawal

The employee can withdraw the number of EPS even if they have not completed 10 years of service. However, if an individual is in service and has not completed 10 years then he/she cannot withdraw the EPS amount. The individual can withdraw the savings of EPS on the EPFO portal by claiming Form 10C.

What happens to EPS contribution?

Unlike the EPF contribution, the EPS contribution does NOT get any interest. When you transfer your EPF, EPS amount will not be reflected in your passbook. But you will get your pension based on the number of years you have contributed, which one can find out from View->Service History of UAN website.

What is EPS a C number?

There is no separate Employee Pension Scheme (EPS) number. The PF account number is the account in which your employer's contribution as well as your contribution for the EPF is deposited. The UAN on the other hand, is a Universal number which acts as an umbrella for all the member IDs or member identification numbers.

When can you withdraw EPS?

Under the existing rule, employees who resign from a job before they turn 58 years of age can withdraw the full PF balance (and the EPS amount depending on the years of service), if he is out of employment for 60 straight days (two months) or more after leaving a job and then withdraw.

Is EPF pension taxable?

As the pension received from EPFO is taxable as salary, it will qualify for the standard deduction. However, the Central Board of Direct Taxes has clarified that the maximum standard deduction would be Rs 50,000 or the amount of pension, whichever is less.

Who are eligible for EPS?

Eligibility to avail EPS benefits

You must have attained the age of 58 years. In case you defer the pension for 2 years (until you reach the age of 60 years), you will be eligible to receive the pension at an additional rate of 4% per year. You must have completed at least 10 years of service.

What happens after death EPS?

If death occurs during the service-If at least one-month contribution is done to EPS then his nominee will be eligible to receive the EPS. If death occurs while not in service-If death occurs after the service but before attaining the age of 58 years.

How do you transfer EPS?

A. EPS transfer can be done online through the Composite Claim Form. The member has to login to the EPF Member Portal and apply for EPF transfer on the job change. The EPF and EPS account will be transferred to the new account automatically.

How do I stop EPS contributions?

You cannot do so. There is no way to close the EPS account. Employees' Pension Scheme (EPS) of 1995 offers pension on disablement, widow pension, and pension for nominees. Those who started job after 1 Sep 2014 and earning more than 15,000 Rs in basic and DA will not be contributing to the EPS or Pension scheme.

How do I claim previous employer EPS?

The EPS money can be withdrawn by an employee or it can be carried forward through a scheme certificate while switching jobs. If you have taken a scheme certificate, submit it to the EPFO through the new employer. When you leave the job, you will again have to fill Form 10C.

How do I claim my EPS online?

Step 1-Login to EPFO Unified Portal for Members. Then on the homepage of Unified Portal, select the option “Online Services” tab. Here, you can withdraw EPF and EPS online and also can check the claim status online.

Can I increase EPS contribution?

A 1996 amendment in the EPS Act gives employees the option to raise pension contribution to 8.33% of the salary (basic + DA). To hike the contribution to EPS, one has to apply to the EPFO along with a consent letter from the employer. Supreme Court ruling makes it mandatory for EPFO to allow higher contribution to EPS.

How do I claim an EPS?

To get EPS amount, in the Composite Claim Form (Aadhaar or Non-Aadhaar), along with choosing 'Final PF balance', also choose the 'pension withdrawal' option. If you plan on re-joining the workforce, you may opt to get the 'scheme certificate' by furnishing Form 10C.

What is the maximum pension under EPS 1995?

You will get a pension of Rs 45,714*, which would be over 900% more than the existing pension of 4,525 per month. India had introduced the Employees Pension Scheme (EPS) in 1995, under which an employer was supposed to contribute 8.33% of the employee's salary in a pension scheme.

How do I calculate what my pension will be?

So, upon applying the formula, (15000 * 35 / 70) = Rs. 7,500 per month is the maximum pension that one can earn through EPS. Some points that are noteworthy here are: The minimum pension that a person can earn under EPS is Rs.

How long does it take to withdraw EPS?

Under the existing rule, employees who resign from a job before they turn 58 years of age can withdraw the full PF balance (and the EPS amount depending on the years of service), if he is out of employment for 60 straight days (two months) or more after leaving a job and then withdraw.

What is the current pension?

The State Pension is a regular payment from the Government that you can claim when you reach your State Pension age. The full amount of new State Pension is currently £168.60 a week – that's just over £8,750 a year, but it's important to check your State Pension online.

What is difference between PF and EPS?

EPF stands for Employee Provident Fund while EPS stands for Employee Pension Scheme. Both EPF and EPS work in more or less the same way i.e. they help employees have a retirement corpus when they are no longer earning. The difference however lies in the way they function. Let us find out.

What is EPS scheme?

EPF Pension which is technically known as Employees' Pension Scheme (EPS), is a social security scheme provided by the Employees' Provident Fund Organisation (EPFO). The scheme makes provisions for employees working in the organized sector for a pension after their retirement at the age of 58 years.

What is employer contribution to EPS?

You contribute 12% of your salary towards EPF, and your employer matches this contribution. A part of the 12% that your employer pays to EPFO goes towards Employees' Pension Scheme or EPS. But usually the employers' contribution is 8.33% of the maximum pensionable salary, as per the existing rules, which is ₹15,000.

Is EPS part of EPF?

When you change your organization, the EPF account gets transferred to your new company. However, of the employer's 12% contribution, 8.33% is contributed to EPS, while the remaining 3.67% is transferred to EPF. The maximum amount that can be deposited in EPS account is Rs. 1250.

What is EPS nomination in EPF?

In the case of EPF, a member has an option to nominate even his/her parents, apart from spouse and children. However, in the case of EPS, a member can nominate only his spouse and children." However, for your pension scheme account, you can only nominate your spouse and children after your marriage."

Is EPS taxable?

Pension under EPS is fully taxable, just like annuity. So, you need to make an assessment about your tax liability after retirement.

What is EPS EE EPF?

EE Amt: Employee Contribution i.e. your total contribution in the EPF account. The sum total of PF amount deducted monthly from your salary. ER Amt: Employer Contribution i.e your company contribution. The sum total of PF amount monthly contributed into your EPF account by your employer.

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